The cosmetics industry is harnessing microbial biotransformation through the adoption of fungi-based cosmetics. Fungi-based cosmetics offer similar benefits to their chemical and more traditional alternatives, including antioxidant, anti-aging, anti-inflammatory, and anti-wrinkling properties, which justify their application in the production of facial creams, sunscreen, body lotions, skin cleansers, shampoo, conditioner, and other skincare and haircare products. This article explores fungi-based cosmetics, with emphasis on the various species of fungi used in their production, the properties of each that are harnessed for various personal care products, and the implications of the cosmetic industry’s adoption of the cosmetics on its sustainability. This is achieved through a compilation and synthesis of existing literature on fungi-based cosmetics, an evaluation of the various fungi-based cosmetics in the market, and an evaluation of the economic and commercial viability of the cosmetics using industry data and projections.